VRC is proud to release its latest Industry Report, which includes a concise, insightful update on the Consumer Product Goods (Food & Beverage) industry including recent transactions, market multiples, company performance and purchase price allocation percentages.
Read the full report: Consumer Product Goods (F&B): March 2019
March 2019 Industry Highlights
- One of the more surprising developments in the food industry has been Kraft Heinz’s $15 billion impairment of some of its key brands, a dividend cut of 30%, and an inquiry into its procurement by the SEC. Brands including Kraft and Oscar Mayer saw their goodwill value reduced, which only added more pressure to the packaged-food giant after disappointing fourth-quarter earnings.
- As consumers’ tastes and expectations advance over time so too will the variety of brands and products offered by leading manufacturers. This is evident among transactions including Flower Food’s acquisition of gluten-free baking company Canyon for $205 million, and Mondelez’s acquisition of high-quality Tate’s Bake Shop for $528 million.
- Compared to previous updates our most recent PPA analysis points to a modest increase in goodwill and brand-related allocations, 43% and 28% respectively. Customer-related allocation has remained near expected levels of around 10%.
Past Industry Updates: